Why has the average time to fund for Fundbox's term loans increased from 2 days to 5 days in the past quarter?

Introduction

The increase in average time to fund for Fundbox's term loans from 2 to 5 days over the past quarter is a critical issue that requires immediate attention. This significant change in a key performance metric could impact customer satisfaction, competitive advantage, and overall business performance. I'll approach this problem systematically, focusing on identifying the root cause, validating hypotheses, and developing both short-term and long-term solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might have been recent changes to the loan approval process. Have there been any modifications to our underwriting criteria or approval workflows in the last quarter?

Why it matters: Changes in internal processes could directly impact funding time. Expected answer: Yes, we've tightened some criteria due to economic conditions. Impact on approach: If confirmed, we'd focus on optimizing the new process.

• Considering user segments, I'm curious if this increase is uniform across all borrower types. Are we seeing the same 3-day increase for both new and returning customers?

Why it matters: Different impacts on user segments could indicate specific issues. Expected answer: The increase is more pronounced for new customers. Impact on approach: We'd investigate new customer onboarding processes more closely.

• Given the nature of term loans, I'm wondering about any changes in loan amounts or terms. Has there been a shift in the average loan size or duration requested by customers?

Why it matters: Changes in loan characteristics could affect processing time. Expected answer: There's been a slight increase in average loan size. Impact on approach: We'd examine if larger loans are causing longer processing times.

• Thinking about external factors, I'm considering market conditions. Have we seen any significant changes in the competitive landscape or regulatory environment?

Why it matters: External pressures could be forcing longer processing times. Expected answer: A major competitor recently launched a faster approval process. Impact on approach: We'd prioritize streamlining our process to remain competitive.